Making a crore in a year

I was doing a simple calculation about what it would take to make Rs 1 crore in one year.

So 1 crore = 10000000

suppose we have a product that gives us Rs1000 profit per product.

To make 10000000 we would have to sell 10000 such units over the period of one year.

Taking account of holidays and a 6 day work  week we get 290 days. So that is about 10000/290 = 34.5 items per day.

There are 2 things missed here
1) the sales force required to sell this product

2) cost of production and distribution

Lets say we hire 5 people we need to pay them monthly. Lets say we hire them at 10000Rs per month.

That comes to Rs 600000 (6lakh) for the year.

So our target for the year now becomes a problem to make Rs10600000 or one hundred and six lakh.

No problem, just recalculate above

number to be sold per day is 10600/290 = 37 (approx).

So far so good. 37 items sold by 5 people per  day looks OK.

What did you say your margin was?

Hmmm, so now adding the cost of production. So lets look at our margin.

percentage margin cost of production net price
10 9000 10000
20 4000 5000
30 2333.3333333333 3333.3333333333
40 1500 2500
50 1000 2000
60 666.6666666667 1666.6666666667
70 428.5714285714 1428.5714285714
80 250 1250
90 111.1111111111 1111.1111111111

So Its quite obvious to me that a 10% margin is more realistic, but with a price of 10000, selling 37 a day looks a lot tougher. The product would have to be really good for that to work out. On the otherhand 1111 buck product looks a lot easier to sell. Then again with 90% margin, you would collect a lot of competition fast which would force you to sell at a lower price and lower margins fast.

So thinking of a business in equilibrium, you can expect to have a 10% margin. So ideally you should situate yourself  at the top of the table and use the 9000Rs cost to make a kickass product that others would find unattractive to copy.

This points to a more niche market with people willing to pay for an awesome product.

Disclaimer: I have no idea how businesses work, this is just a thought experiment, if you will. Suggestions, comments welcome!.

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Leading

“Is that acknowledgement before this section or after it?”

“I am pretty sure its before this. Damn, dont have a clue. Better get out my study guide, now where did I keep that binder”

I need to lead an introduction to the Landmark Forum tomorrow. The same old conversations are resounding in the same (probably) old grey cells in my brain.

“Maybe I should just quit man. Its so inauthentic. Dude, I dont even know the smell of integrity. Ahaaa! a new Enquiry “The smell of integrity”.”

“Shutup man, you committed to this, just do as you were taught. If you work the introduction works”

“Is my life really working?”

“Its 2 Am, my baby just went to sleep crying, Wife is upset that I am not home enough, and Project at work is stuck. Yep absolutely “leading” in my life”

<interminable pause>

“You know my life sucks and I am going to tell these people to try on Landmark. Yeah right, Lets get someone on the line and cancel”

“Dude its 2Am. Just survive man! Do something and then ask for coaching… standard plan”

Introduction scheduled for 930Am on a Saturday.

“Why do these people have to be such heroes? noone will come. Anyway need to be in integrity, atleast for this.”

The night passes. I sleep peacefully, years (it seems) of integrity conversation has made me numb.

I wake in the morning to the message “Still dont have the introduction material for the guests”.

Scramble, Scramble, Scramble….frantic calls cause the introduction materials to present themselves at the appropriate time, at the appropriate place. In the meanwhile, I have got late. 

“Integrity BOY!”

Call up host and tell I will be 15 min late.

“phew integrity restored, such a cheater I am”

In the car.

“Drive, Drive, Drive…..”

“Dude that was a red light”

“Damn, need to be in Integrity, slow down and be more vigilant, you know maybe my wife is right about my driving. Lets just be present and drive.”

“Dude, you forgot the coach clearing!, call coach up”

Call coach for the clearing.

Coach: “What is the intention of the intro”

“Bla, Bla, Bla”

Coach: ” Did you do your prep?

“ahem”

Coach: “Dont get into your head and just be yourself and share what is so, no pretense”

“And you think people will be interested in Landmark after that” (sotto voce)

Param: “got it coach.”

Reached the venue.

Host: “I had 4 confirmations, but in-laws attacked and others had somethings to do.”

“sounds familiar”

30 minutes later, we are still at 1 guest: Hosts wife who is now a little hostile (husband has been with Landmark a while). I tell husband to take part in the intro as well. Introduction Begins.

Param: “Look at areas of life that are working and not working”

Wife: “Everything is fine”

Husband: “Just my career. Everything is working fine.”

Param: “Cool, lets look at various aspects of life”

Wife,Husband: Career, Family, Money

“The standard trilogy”

Param: “Lets look at some more…”

“There is some stiffness between these two”

Son enters. Naughty kid. Very Naughty. Throws his books on the floor in the hall.

Wife: “Dont do that bolu. Pick up the things right now!”

Husband: “dont shout at him, he is just a boy”

Param: “How about relationships? with family, work, ourselves?”

Husband/Wife: “Wow we never thought of that, I thought our relationship was fine”

The introduction continues, complaints and counter complaints and I am ducking and diving for safety.

Param: “Everybody speaks for him/her self, please dont coach each other”

Peace is restored.

Wife: “I have to look after work and home and I dont get any support from anyone and this boy (looks slant eyed at bolu, who is now happily scribbling on the wall).”

Husband: “My son never listens to me”

The introduction continues, peace, blossoms into a space of responsibility.

Wife: “I am inventing the possiblity of enthusiasm.”

Wife rushes and hugs the son, who is surprised by this show of emotion.

Husband: “I am inventing the possibility of being inspiring”

Husband: “Bolu, show uncle how nicely you put away your books!”

Bolu enthusiastically cleans up the mess he has created. Husband hugs the wife and child.

Life is moving again.

The introduction ends. I am touched, moved, and inspired. The wife has registered for the Landmark forum.

Wife: “You really did some magic today.”

I get into the car and leave.

“You are awesome man!”

“Really, you know maybe I am awesome”

“But your life sucks!”

“I am awesome, I will deal with it, as I always do”

Switch down to 3rd gear, pump the accelerator and feel the turbo bump me. 

Its a new world

Remember that failure that happened yesterday
or That embarrassing moment you’d rather not say?

Remember the joys of yesteryear
and the wish to be there year after year?

Remember your fear of losing your money
of days spent idle wishing to spend but without any?

Remember the toys that you cuddled and kissed
which when broken or lost were bitterly missed?

Remember the anger at those against you
and the pain that nagged you when naught you could do?

Remember the beauty of yesterdays sunsets
or the vastness of the heavens on a cool summer night?

Remember the love that was lost long ago
who left with her things and your heart in the tow?

Remember the frolicking of your toddler years
of innocence not remembered and crocodile tears?

Remember those friends who left you alone
abandoned and lonely, desolate, unknown?

Remember those mates that were always around
bringing cheer and good feeling and camaraderie unbound?

Remember the meaning you added to all these?
That leaves you empowered, then crushed, and all in between?

None of that happened, the meanings I mean
what happened just happened there is nothing more to be seen…

Its a new world today, a new hour, a new second
Its a new moment, right now, free of the past
the past was your creation, albeit extempore
the future is empty, go create some more!